Australian Firm Plans Bitcoin ATM Rollout

An Australian firm is planning to roll out bitcoin ATMs across the country from this month, as authorities consider whether to expand the country’s anti-money laundering surveillance to include the virtual currency.

Reuters

Melbourne-based Australian Bitcoin ATMs said it plans to buy machines from makers including Robocoin. A spokeswoman for the Australian company said it is in discussions about setting up ATMs at shopping centers, casinos, airports and other commercial centers. The rollout will begin in major commercial centers Sydney and Melbourne in February, followed by Adelaide, Brisbane, Perth and possibly other countries in the region, she said.

Bitcoin, the most prominent of a host of new virtual currencies, is created by a global network of digital “miners,” whose computers discover them via complex computations and then serve as protectors of the integrity of the virtual money supply. They can be transferred seamlessly and internationally between digital “wallets” with short confirmation times and close to zero transaction costs.

But bitcoin’s popularity has forced authorities around the world to consider ways to regulate commerce in the currency, which have impeded its adoption and sometimes weighed on its price. In December 2013, bitcoin lost nearly half of its value after China clamped down on use of the virtual currency among some of its financial institutions. When popular games maker Zynga said it would start experimenting with bitcoin purchases on Farmville 2 and several other games in January, Bitcoin’s worth rose back above US$1000.

The first bitcoin ATM were rolled out in Canada in October 2013. Their presence in Asia has met with some resistance, however, with Taiwan’s financial regulator last month barring the installation of ATMs on the island.

In Australia, because bitcoin ATMs will effectively be two-way vending machines, not part of a deposit-taking institution, no licenses are needed to operate them. Bitcoin isn’t recognized as legal tender in Australia, however, and the country’s Treasury department said it has no plans to review that. The Australian Bankers’ Association, which represents the country’s traditional lenders, said it doesn’t have a position on bitcoin.

The Attorney-General’s Department, which oversees Australia’s anti-money laundering regime, is reviewing current regulations to see whether they could be expanded to cover new payment methods such as bitcoin. Australia’s central bank has previously cautioned on speculation in the currency, but said it doesn’t expect it to become a material problem because transaction volumes are relatively low.

Australian Bitcoin ATMs was founded by Jamie McIntyre, a motivational speaker and author. Private investors in the company include Daniel Roberts, who is also an investment director at Palisade Investment Partners in Sydney.